Bitcoin soared beyond $42,000 as part of a broader rise in digital tokens, fueled by expectations of a comprehensive revamp of crypto supervision in the United States, which Treasury Secretary Janet Yellen dubbed “historic.” As of March 2, the most prominent cryptocurrency has increased by 10% to $42,427, its highest level since March 2. Ether increased by 8%, while so-called privacy cryptocurrencies like Monero saw significant increases of up to 100%. The crypto surge co-occurred as a broad risk-on rally engulfed European stock markets.
A statement on the Treasury’s website that was subsequently deleted hailed a future executive order from President Joe Biden, stating it strikes the correct balance between supporting innovation and mitigating possible risks. The message was then removed from the website. There was a noticeable uptick in sentiment in a sector long asking for more regulatory oversight.
For years, the cryptocurrency market has been hampered by a lack of regulatory certainty in the United States, according to a statement released Wednesday by Hayden Hughes, chief executive officer of trading social-media site Alpha Impact. This might be a watershed event in the history of the business if clear parameters are established. Yellen said that the department’s activities under the presidential order would complement work that has already been done, such as the study on stable coins released by the President’s Working Group on Financial Markets last year.
In a statement issued on March 9, which has since been withdrawn, Yellen said that the strategy specified in the order “will foster responsible innovation that has the potential to provide enormous benefits for the country, consumers, and companies.” Even after Wednesday’s surge, Bitcoin remains within the area of $33,000 to $48,000, which has been its trading range for most of this calendar year. After deviating from equities early last week, cryptocurrencies had their gains eroded as the conflict in Ukraine became more intense, casting doubt on the notion that cryptocurrencies are a haven in times of geopolitical crisis.